A-LevelAccountingErrors and Suspense AccountsMay/June 2016Paper 1 Q81 Mark
In an income statement carriage outwards of $5000 has been treated as carriage inwards. Carriage inwards of $3000 has been treated as carriage outwards. What are the effect(s) of these errors on the profit?
Agross profit: overstated by $2000, profit for the year: understated by $2000
Bgross profit: overstated by $8000, profit for the year: no effect
Cgross profit: understated by $2000, profit for the year: no effect
Dgross profit: understated by $8000, profit for the year: overstated by $8000
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of errors and suspense accounts within the Accountingsyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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